RE:DistrSukhi19 wrote: The board has approved the distr of 84 Cents for 2018 which means if you buy at today's price more than10% income is assured.
One thing is for sure that with customer base almost doubling over last three years, their business is not falling apart. Even with lower margins. more customers will generate more revenue.
Their float is small as compared to CJ. Hence number of units available for borrowing will also be less.
That really depends on their customer base. The big money is in industrial customers, which I believe makes up the lions share of the power recipients by volumes. Households needs don't generate a lot of profit. Some are even sold energy at a loss because of government entitlements. Then Crius also sells to other retailers in some sort of partnership agreement.
One other thing to consider. IF US industry is going to pick up pace of procuction, it will need more ENERGY. It has to come through brokers. There was a time when many companies owned their own oil/gas wells. Regulations changed to stop that practice.
Let me give you an example. Commercial glass containers. They used to own their own NG wells and could run profitably because of this. Regulation broke that up along with taxation.
Now, commercial glass containers are mostly made outside of North America and imported/distributed CHEAPER than we can produce them. That will change with a Trade War. This all may just be markets shuffling along with the shorts in an unconcerned manner. Look at the other energy distributors prices today. They are all down as well.
The power distribution sector is at the moment out of favor. Quicker, more lucrative profits elsewhere???? Normal ebb and flow of the markets??? Panic selling??? Robo selling??? Selling to cover margins???? All of the above and a lot more on the side of the few remaining shorts.
Even if the price of the units spikes at the end of the week, there wil be another short opp as the demand for the winter energy needs drops off.
GLTA the good folks here.